Does Unexpected Income Affect Your Benefits?
Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are essential benefits to many Americans living with disabilities. While SSDI and SSI have some similarities, they also come with various differences. For example, while SSDI is not affected by unearned income, such as lottery winnings or inheritances, SSI is almost always affected by a significant change in resources.
Income Limits for SSDI & SSI
Income limitations, or Substantial Gainful Activity (SGA) limits, which prohibit an individual from receiving SSDI are based on income that is earned. In other words, if a person’s disability doesn’t stop them from earning equal to or above the SGA limit, then they are not eligible for SSDI. SGA limits are adjusted every year based on the national wage index.
These rules apply to SSI, as well. However, unearned income, such as inheritances, gambling winnings, lump sum settlements, etc. do not impact SSDI benefits, but they do affect SSI eligibility.
Can You Receive Inheritance While on Social Security Disability?
Social Security Disability Insurance is a benefits program for disabled individuals who have previously worked and put money into the Social Security system. Therefore, any money received through SSDI is money a disabled beneficiary has already earned, which means unearned income such as inheritance, lottery winnings, etc. do not affect SSDI payments.
SSI and Inheritance – Affecting Eligibility
While it is possible for SSDI beneficiaries to receive inheritance while on benefits, those receiving Supplemental Security Income are usually unable to continue receiving benefits after coming into a large sum of money. This is because SSI is allotted to individuals who have not put money into the Social Security System, and have extremely limited resources.
Those who receive SSI are required to meet certain asset limits. If an individual who receives SSI comes into an inheritance or lump sum of money, their assets inevitably increase, impacting their income and resources, and therefore their SSI eligibility.
Contact Peña & Bromberg for More Information
If you are receiving SSI benefits or SSDI, and you’re concerned that your benefits will be affected by an inheritance, lottery winnings, or other large sum of money, contact our Social Security attorneys in Fresno. Our lawyers will be happy to help you better understand the limitations of both SSI and Social Security Disability benefits.
Contact The Law Offices of Jonathan O. Peña, Peña & Bromberg, PLC to speak to our qualified legal team today.